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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29797
Experience:  Taxes, Immigration, Labor Relations
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I have a sub chapter s corporation that i have not filed any

Customer Question

i have a sub chapter s corporation that i have not filed any tax return or had activity for the last 5 years due to illness and then death of spouse. what do i need to do to get current. It is my intent to dissolve this s corporation, of which i am the only shareholder, and possibly start a new business as an llc. it has been 18 long months since my spouses death. i need to move on and get things in proper order.
JA: Can you tell me what state the LLC is registered in?
Customer: it is an s corporation. registered in state of illinois.
JA: Has anything been filed or reported?
Customer: not for the last 5 years.
JA: Anything else you want the lawyer to know before I connect you?
Customer: it was incorporated in 3/26/2001
Submitted: 5 months ago.
Category: Tax
Expert:  Lev replied 5 months ago.

S-corporations are required to file tax return -- regardless if there were any activities.

Penalties may be severe even if there is no any tax obligations.

Expert:  Lev replied 5 months ago.

However - if you had medical reasons for not filing - usually the IRS accepts that as a reasonable cause - and could abate the penalties.